The global smart fleet management market that generated $38.24 billion in 2019, is expected to garner $98.65 billion by 2027, growing at a CAGR of 15.8% between 2020 and 2027, finds Allied Market Research (AMR). AMR, a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, released a report titled, 'Smart Fleet Management Market by Mode of Transportation (Roadways, Marine, Airways, and Railways), Application (Tracking, ADAS, Optimization, Fuel Cards, and Automatic Vehicle Identification), Connectivity (Short Range and Long Range), and Operation (Private and Commercial): Global Opportunity Analysis and Industry Forecast, 2020–2027.'
The drivers, restraints, and opportunities, according to AMR, include integration of real-time fleet monitoring systems in vehicles, rise in utilisation of cloud-based technology for smart fleet management solutions, and enhanced vehicle monitoring and furl management drive the growth of the global smart fleet management market. However, concerns related to prices and cybersecurity restrain the market growth. On the other hand, better driver and vehicle safety, augmentation of business decisions for fleet owners, advancement of the intelligent transportation system, and increased demand from developing countries present new opportunities in the coming years.
COVID-19 Scenario
Disrupted supply chains across the world and increased panic in the customer segment are the major consequences of the COVID-19 outbreak on the industry.
In addition, the investments and further projects have been put on hold.
However, the industry is anticipated to witness higher sales momentum for smart fleet technology post COVID due to its operational feasibility to attain safety measure. The roadways segment to maintain its dominant share during the forecast period.
Based on the mode of transportation, the roadways segment held the highest market share in 2019, accounting for nearly three-fifths of the total share of the global smart fleet management market, and is expected to maintain its dominant share during the forecast period. In addition, the segment is expected to witness the highest CAGR of 16.9%from 2021 to 2027. Increasing penetration of digital technology in logistics activities and growing trade activities across the globe are the major factors driving the growth of the segment.
Commercial segment to lead
Based on operation, the commercial segment contributed to the highest market share in 2019, accounting for more than three-fifths of the total share of the global smart fleet management market, and is projected to maintain its leadership status by 2027. Furthermore, the segment is expected to grow at the highest CAGR of 16.4% during the forecast period. Cost-effective operations eliminate the requirement of additional workforce for the fleet owners, which augments the segment's growth.
Asia-Pacific to dominate
The global smart fleet management market across Asia-Pacific dominated the market in 2019, with nearly two-fifths of the total revenue share. The region is expected to lead the trail throughout the forecast period. In addition, the region is also anticipated to manifest the fastest CAGR of 17.7 from 2020 to 2027. This is owing to availability of the cost-effective technology solutions development and growing rate of trade activities in the region. At the same time, the market across the North America region is expected to portray the 16.0% of CAGR, the report said.
Courtesy AMR.
Photo is representational; courtesy: Bosch.